CLARIFICATION REGARDING PRESENTATION RELEASED TO THE ASX ON 1 OCTOBER - - PDF document

TORO ENERGY LTD: ABN 48 117 127 590 Address: 2/35 Ventnor Ave West Perth WA 6005 Tel: +61 8 9214 2100

ASX RELEASE

2 October 2015

CLARIFICATION REGARDING PRESENTATION RELEASED TO THE ASX ON 1 OCTOBER 2015

At the request of the ASX, Toro Energy Limited (ASX:TOE) wishes to advise that it has updated the “Presentation to Sydney Mining Club” announcement to include the statement required in respect of the Theseus resource estimate being prepared under JORC 2004 and competent persons statement. Todd Alder Company Secretary

Sydney Mining Club

Vanessa Guthrie 1 October 2015

Uranium: critical to a clean energy future

2

Why talk about uranium?

2

3

How safe is uranium and nuclear? Can Fukushima happen again? Can Australian uranium be diverted to weapons? What is the answer to waste disposal? How is nuclear part of the world energy mix?

Uranium and Radiation

• Heaviest naturally occurring metal
• Mildly radioactive in natural form
• 3 isotopic forms – 238U 235U 234U
• Uranium ore =
• 238U = 99.3%
• 235U = 0.7% (fissile)
• To convert U ore to nuclear fuel requires multiple

processing steps

• 1 kg U3O8 = 20,000 t black coal
• Sufficient energy to power an average household

for 25 years

4

Uranium and Radiation

4

1 kg uranium Household for 25 years

=

Uranium as a source of energy

5

Total annual per capita dose = 3.2 mSv

Where does radiation come from?

6

What most people don’t know about radiation….

Sources of Radiation Exposure

7

Nuclear Fuel Cycle

8

Three Mile Island

• Operator training
• “Human” factors

Chernobyl

• Plant design
• Planned maintenance
• “Human” factors

Fukushima

• Plant design
• Risk Protection
• Early warning systems
• Useful life

Lessons from Incidents

9

64

105

990 4000?

Source: WA Police, UNSCEAR, IAEA, CNN

1986 Chernobyl 2014 Commercial airlines 2014 WA roads 1979 3 Mile Island 2011 Fukushima

75,000

Deaths from Nuclear related events

10

• Japan systematically closed reactor fleet over 2 year period
• Loss of 30% power generating capacity – replaced by oil, coal and gas
• Japan committed to 22% nuclear energy as part of future energy mix
• 2 reactors allowed to re-start – Ohi 1 and Ohi 2 then closed after one year operation
• 25 reactors re-start applications in place
• Sendai 1 reactor re-started 10 August, Sendai 2 reactor now ready
• Japanese nuclear operators investing ¥3 trillion in safety measures
• China suspended approvals for reactor new builds, now recommenced Gen IV design

Events since Fukushima

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New Reactor Design

12

China, India new build program Fukushima Chernobyl

• NPT commenced in 1968, now 191 countries have signed
• 5 recognised nuclear states: US, Russia, UK, France and China
• 5 non-signatories: India, Pakistan, South Sudan, Israel and North Korea
• Nuclear weapons declared in Pakistan, India, known in Israel, North Korea
• 235U is required at 3-5% for nuclear power; >95% for weapons
• “Megatons to Megawatts” US-Russia program
• 20 years, US$1.3 billion
• 500 tonnes weapons grade HEU removed
• 7 trillion KWH or 10% US electricity generation
• Australia-India Nuclear Civil Cooperation Agreement 2014
• Yet to be ratified by Australian Parliament
• Will need to meet Australian Safeguards Act
• Reflects IAEA requirements

Nuclear Non-Proliferation Treaty

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Nuclear Fuel and Waste

The hockey puck test: High level spent fuel from one person’s lifetime

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Source: WNA

Percent by radioactive content Percent by volume Low level waste Hospitals/medical; Industrial, tailings 1 90 Intermediate level waste Resins, cladding, industrial, construction 4 7 High level waste Spent fuel, reprocessed waste 95 3

Nuclear Fuel and Waste

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Nuclear Fuel and Waste

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Source: WNA

• Technology solutions available today
• Multiple barrier systems
• Geological repositories
• Total waste over 60 years = 30,000m3
• Equivalent to 10 Olympic swimming pools
• By 2040 = 60,000 m3
• 1GWe reactor = 3m3 (27t) per year of waste
• 1000 years to decay to original

radioactivity levels

• 5% total cost of electricity production

The waste dilemma

15

16

Uranium – critical to a clean energy future

47%

• f world’s population

6 out of 10

Have nuclear power

7.3 billion people.…

17

(1) Million tonnes oil equivalent (Mtoe) (1)

3

(1) Million tonnes oil equivalent (Mtoe) Source: IEA 2014

World Energy Outlook 2014

18

Increase by 2040 Percent % increase Oil supplies Non-OPEC supplies to 2025 Requires investments in Middle East 14 mbd 15 Coal 70% output from India, Indonesia, China, Australia by 2040 6,350 Mtce 0.5%pa Gas Includes unconventional gas 31% increase Requires $11 trillion infrastructure investment 5,400 bcm 50 Nuclear Includes 380 GW added, 148 GW retired 624 GW 60 Renewables Includes hydro, solar, wind, biofuels 33% global power generation by 2040 Requires subsidies of $205 billion in 2040 16,500 TWh 300 CO2 emissions 40% of global emissions over the period 15.4 Gt 16

Source: IEA 2014

Where will the energy come from?

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344 69

Under construction

Nuclear Power today

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Operating reactors

60%  624GW

380 GW added 148 GW retired

112,000Mt

CO2 emissions avoided

Nuclear Power in 2040

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Uranium Demand

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Global Nuclear Power Growth

22

• 60% increase in nuclear power by

2040

• 624 GWe
• China:

– 58 GWe by 2020 – Largest nuclear fleet by 2025

• India:

– 17GWe by 2024 – 25% energy mix by 2050

• Middle East:

– UAE, Saudi Arabia, Egypt, Jordan – Displacing domestic gas power gen

• Source of low emissions energy
• Life cycle emissions in the same

range as renewables

• Competitive average levelised costs

per unit power output ($/MWh)

• Recognition by US-China Joint

Announcement on Climate Change

• Nuclear power generation

projected to grow by 60% by 2040

• 1GWe nuclear reactor could meet

Australia’s emissions reductions commitments by displacement of fossil fuels

Life cycle emissions from power generation

Source: IEA, 2014; MCA 2015

Nuclear Power and Climate Change

23

2012 $/MWhr

Comparable Cost of Nuclear Power

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1st

in resources

• 32 per cent of global uranium resources

2nd largest primary energy source

• 22 per cent total primary energy production in 2012/13

3rd in global production

• 11 per cent of global supply in 2013

4,200 jobs

• Uranium industry employment, much in remote areas

5,710 tonnes

• production of uranium in 2013-14
• Equal to >90% of domestic energy consumption

$622 million

• Australian uranium export earnings in 2013/14
• $1.1billion forecast value of Australia’s uranium exports in 2018/19

Source: OECD NEA Red book, 2014; BREE, WNA, 2014; ASNO Annual Report 2013/14

10

Australian Uranium Facts

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Australian uranium… many opportunities, few choices

26

• Free trade deals – China, South Korea and Japan
• India – Australia Nuclear Civil Cooperation Agreement

signed, Free Trade Agreement expected 2015

• Australia – strong production history but now only

three mines in operation

• Queensland assets now under uranium ban again;

approvals required by 2017 for WA assets

• 2018 forecast production limited to Olympic Dam,

Four Mile

• Near term production assets with approvals ready to

go are limited – Wiluna is at the front of the queue

/ technical studies

Global uranium market

• Global uranium stocks are high, filling demand

gap and holding back investment

• Uranium prices taking longer to recover, but long

term fundamentals remain strong

• Forecast demand/supply shows a gap emerging in

mid term

• Australia is well positioned to deliver into growing

Asian market

• Toro continues to focus on developing Wiluna

allowing value to be realized …. permitting and traditional owner agreements, resource improvement, project financing

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Toro’s vision

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Unlocking the potential of 200-300 Mlb Wiluna Province

1

Driving value from Exploration

3

Asset base growth

2

ASX TSX

Create a significant mid-tier uranium company

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Toro’s asset portfolio

(1) (2)

(1) Refer Resources table at slide 40 and 41 and Competent Person's statement following this presentation (1)

Capital structure

[VALUE] 20.8% 18.3% 4.4% 35.3%

OZ Minerals Mega Uranium The Sentient Group RealFin Cap

Shareholders

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Directors

John Cahill (1) Acting Chairman Vanessa Guthrie Managing Director Richard Patricio – Mega NED Richard Homsany – Mega NED Michel Marier – Sentient NED Board and management shareholding – OTM options and performance rights 2% of diluted issued capital

Research Coverage

Realfin Capital Partners Dundee Proactive Investors

Capital Structure

ASX Code TOE Ordinary Shares on Issue m 2,000.8 Share Price cps 5.8 Undiluted Market Capitalisation A$m 116.0 Cash (31 August 2015) A$m 15.8 Loan A$m 6.0

(1) Fiona Harris was granted a leave of absence effective 1 July 2015. John Cahill is acting Chair during this period.

Project Overview

Wiluna Project

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Wiluna Project

Location

• 520 km north of Kalgoorlie and 30 km south of Wiluna

Highlights (1)

• 6 shallow calcrete-hosted carnotite deposits
• Centipede, Lake Way, Millipede, Lake Maitland
• 1.3Mtpa plant, 2mlbpa production
• Life of mine 16+ years
• First class mining jurisdiction; 100+ years of mining history
• Infrastructure and services available – power, gas,

transport, people

• 350 workers in construction, 170 production
• Major environmental approvals to commence mining now in

place Status

• State & Federal Environmental approvals granted for

processing, Centipede and Lake Way deposits

• Current application for Millipede/Lake Maitland submitted
• Optimisation studies underway
• Low technical risk – simple open cut mining and proven

process flow sheet

• Project financing ahead

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Wiluna Project - highlights

32

(1) Refer ASX release 20 November 2013 for additional and qualifying information on the resource that underpins the production target and ASX release 30 January 2014 that provides the material assumptions on which the production target is based.

• No discharge to surface waters
• No listed species of significance
• Re-use of all mine dewatering
• In-pit tailings storage
• CoGen power – heat and off gas

recovery into processing facility

• No standing landforms post-mining
• Culturally sensitive areas excluded

from mining

Wiluna – a low impact project

33

Community

• Strong regional support for Toro’s efforts including the Wiluna shire and Traditional Owners
• The region needs new mining proposals – Magellan recently placed on care and maintenance, no exploration

discoveries

• Mine would employ over 300 people in construction and an operating workforce of 180
• Annual mine expenditure of approximately $80M
• Well advanced with a mining agreement with the Traditional Owners

– Consultation has been consistent for many years – Commitments to training and education to build capacity – Liaison Committee to be formed, representatives to be employed – The mine will require land management services, environmental and heritage management and monitoring – Production and milestone payments

34

Partner Capital $315m

Wiluna Project Financing Concept

Project funding considerations

• Debt financing with suitable offtake in place

could support up to $160M project finance

• JAURD / Itochu own an option to invest US$39M

in Lake Maitland for a 35% interest

• Opportunity for significant strategic partner to

assist the project financing

• Asia and the merging economies are the target

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Wiluna – ready for the uranium price rise

Development timetable

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Why Wiluna? …pathway to production

20 40 60 80 100 120 140 160 180

Omahola Matoush Manyingee Carley Bore Various Athabasca Etango Norasa Reno Creek Mulga Rocks Yeelirie Dewey Burdock Temrezli Salamanca Kintyre Wiluna Lance

Exploration stage Scoping / PEA / Feasibility…Permitted In construction

Project Resources – Mlbs

37

Summary

• Uranium and nuclear industry has strong track record
• Nuclear power is important in meeting global energy

demand in a carbon constrained world

• Australia has significant U resources and real opportunity

for growth

• Toro has a clear vision to create value in the uranium

industry

• Our belief in the uranium market and in the need to

continue to advance the approved Wiluna Uranium Project despite slow market pressure

• On the doorstep of the fastest growing world economies in

China and India

• The Wiluna Uranium Project is at the front of the Australian

project development queue

Uranium and Toro – part of a clean energy future

38

Contact

Dr Vanessa Guthrie

Managing Director

Toro Energy Limited

L3 33 Richardson street WEST PERTH WA 6005 Telephone: +61 8 9214 2100 Email: info@toroenergy.com.au Website: www.toroenergy.com.au

Thank You

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Appendix - Resources

The Wiluna Uranium Project - JORC 2012

Measured Indicated Total Measured or Indicated Inferred Total Deposit Measure 200 ppm 500 ppm 200 ppm 500 ppm 200 ppm 500 ppm 200 ppm 500 ppm 200 ppm 500 ppm Centipede Mt's 2.9 1.2 7.5 3.1 10.4 4.3 - - 10.4 4.3 Grade ppm 551 872 572 943 566 923 - - 566 923 Mlb's U3O8 3.5 2.3 9.5 6.5 13.0 8.8 - - 13.0 8.8 Lake Way Mt's

• - 10.3 4.2 10.3 4.2 - - 10.3 4.2

Grade ppm

• - 545 883 545 883 - - 545 883

Mlb's U3O8

• - 12.3 8.2 12.3 8.2 - - 12.3 8.2

Millipede Mt's

• - 4.5 1.6 4.5 1.6 1.9 0.4 6.4 1.9

Grade ppm

• - 530 956 530 956 382 887 486 943

Mlb's U3O8

• - 5.3 3.3 5.3 3.3 1.6 0.7 6.9 4.0

Lake Maitland Mt's

• - 19.9 7.5 19.9 7.5 - - 19.9 7.5

Grade ppm

• - 555 956 555 956 - - 555 956

Mlb's U3O8

• - 24.3 15.7 24.3 15.7 - - 24.3 15.7

Sub-total Mt's 2.9 1.2 42.2 16.3 45.1 17.6 1.9 0.4 47.0 17.9 Grade ppm 551 872 553 935 553 930 382 887 546 930 Mlb's U3O8 3.5 2.3 51.4 33.7 55.0 36.0 1.6 0.7 56.6 36.7 Dawson Hinkler Mt's

• - 8.4 0.9 8.4 0.9 5.2 0.3 13.6 1.1

Grade ppm

• - 336 596 336 596 282 628 315 603

Mlb's U3O8

• - 6.2 1.1 6.2 1.1 3.2 0.4 9.4 1.5

Nowthanna Mt's

• - - - - - 11.9 2.3 11.9 2.3

Grade ppm

• - - - - - 399 794 399 794

Mlb's U3O8

• - - - - - 10.5 4.0 10.5 4.0

Total Regional Resource Mt's 2.9 1.2 50.6 17.2 53.5 18.4 19.0 2.9 72.5 21.3 Grade ppm 551 872 517 918 519 915 365 791 479 898 Mlb's U3O8 3.5 2.3 57.7 34.8 61.2 37.1 15.3 5.1 76.5 42.2 (1) Tonnes and pounds are quoted to one decimal place which may cause rounding errors when tabulating (2) All Resources reported in accordance with the 2012 edition of the JORC code. (3) Refer ASX release 20 November 2013 for additional and qualifying information on the resource.

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Theseus Project - Resources

41

(1) GT is a calculation of the average grade of the mineralised interval multiplied by the width (thickness) of the interval (2) Tonnes and pounds are quoted to one decimal place which may cause rounding errors when tabulating (3) All resources are reported in accordance with the 2004 edition of the JORC code. Refer competent persons statements at slide 42 of this presentation

Inferred Mineral Resource ppm ppm.m Tonnes (M)(2) Grade ppm Mlbs (2)

Grade cut-off 200 6.3 493 6.9 GT(1) cut-off 1,000 6.1 491 6.6

This information was prepared and first disclosed under the JORC Code 2004. It has not been updated since to comply with the JORC Code 2012 on the basis that this information has not materially changed since it was reported.(3)

Appendix - Competent Persons Statement

42 Wiluna Uranium Project 2012 JORC code compliant resource estimates The information presented here that relates to Mineral Resources of the Centipede, Millipede, Lake Way, Lake Maitland, Dawson Hinkler and Nowthanna deposits is based on information compiled by Dr Greg Shirtliff of Toro Energy Limited (with the aid of Mega Uranium Limited geologists Mr Stewart Parker and Mr Robin Cox in the case of Lake Maitland) and Mr Robin Simpson and Mr Daniel Guibal of SRK Consulting (Australasia) Pty Ltd. Mr Guibal takes overall responsibility for the Resource Estimate, and Dr Shirtliff takes responsibility for the integrity of the data supplied for the estimation. Dr Shirtliff is a Member of the Australasian Institute of Mining and Metallurgy (AusIMM), Mr Guibal is a Fellow of the AusIMM and Mr Simpson is a Member of the Australian Institute of Geoscientists (AIG) and they have sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity they are undertaking to qualify as Competent Persons as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code 2012)’. The Competent Persons consent to the inclusion in this release of the matters based on the information in the form and context in which it appears. Theseus Prospect 2004 JORC code compliant resource estimate The information presented here that relates to the Mineral Resources of the Theseus Prospect is based on information compiled by Dr David Rawlings, formerly of Toro Energy Limited and Mr Michael Andrew of Optiro. Mr Andrew takes overall responsibility for the Resource Estimate and Dr Rawlings takes responsibility for the integrity of the data supplied for the estimation. Dr Rawlings and Mr Andrews are Members of the Australasian Institute of Mining and Metallurgy (AusIMM) and they have sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity they are undertaking to qualify as Competent Persons as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. The Competent Person consents to the information presented here relating to Mineral Resources as well as to the form and context in which it appears.